QUESTION $2$:

Seronok Adventurer Bhd has RM$6\mathrm{.}4$ million shares of common stock outstanding, $200,000$ shares of $3\mathrm{.}8$ percent preferred stock outstanding, par value of RM$100,$ and $120,000$ bonds with a semiannual coupon of $4\mathrm{.}8$ percent outstanding, par value RM$1,000$ each. The common stock currently sells for RM$54$ per share and has a Beta of $1\mathrm{.}08,$ the preferred stock currently sells for RM$103$ per share, and the bonds have $15$ years to maturity and sell for $107$ percent of par. The market risk premium is $7\mathrm{.}5$ percent, T$-$bills are yielding $2\mathrm{.}4$ percent, and the company's tax rate is $22$ percent.

Required:

a$)$ What is the firm's market value capital structure?

b$)$ If the company is evaluating a new investment project that has the same risk as the firm's typical project, what rate should the firm use to discount the project's cash flows?